Dyal Capital Partners LP said Dec. 26 that it has made a strategic minority investment in Cerberus Business Finance LLC. Financial terms weren’t announced. Dyal is a unit of Neuberger Berman. Cerberus Business Finance is the middle-market lending platform of Cerberus Capital Management LP.
NEW YORK, Dec. 26, 2017 /PRNewswire/ — Cerberus Business Finance, LLC (“CBF”), the middle-market lending platform of Cerberus Capital Management, L.P., announced today that affiliates of Dyal Capital Partners, L.P. (“Dyal”), a division of Neuberger Berman, made a strategic minority investment in CBF.
Mark Neporent, Chief Operating Officer of Cerberus Capital Management, L.P., commented, “Dyal recognized the value and growth potential of our market-leading lending platform that we have built over the past 23 years. We look forward to continuing to grow and strengthen our U.S. middle-market lending franchise in partnership with Dyal.”
As a result of this passive non-voting minority investment, there will be no changes in the day-to-day management or operation of CBF, or to CBF’s decision-making or investment process. Additional terms of the transaction were not disclosed.
Daniel Wolf, CEO of Cerberus Business Finance, said, “Dyal’s investment validates our deliberate and long-term strategy to build an enduring middle-market lending platform. We are thrilled to partner with Dyal, who has earned a reputation for supporting best-in-class alternative investment managers.”
Michael Rees, Head of Dyal Capital Partners, added, “Cerberus Business Finance is an impressive organization with a long-term proven track record of sourcing, structuring and servicing middle-market loan investments. We look forward to our partnership and the continued success and growth of this platform.”
About Cerberus Business Finance Cerberus Business Finance, LLC (“CBF”) currently manages approximately $14 billion of capital dedicated to its middle-market direct lending business. Over the past two years, CBF completed over 145 transactions, primarily as lead agent, totaling $10.7 billion of credit facilities. Beginning in 1995 with predecessor entities, CBF has managed funds and accounts focused on the direct origination of senior secured loans predominantly to U.S. middle-market companies across broad industry categories. The vast majority of CBF’s borrowers are owned by private equity sponsors, most of whom are repeat clients. Since the founding of its direct lending business, Cerberus Business Finance has invested over $25 billion in U.S. middle-market businesses.
About Dyal Capital Partners Dyal Capital Partners, a division of Neuberger Berman Group, seeks to acquire minority equity interests in institutional alternative asset management businesses worldwide. Dyal Capital Partners was established in 2011 and currently has 26 minority partnerships. For more information, please visit www.dyalcapital.com.
About Neuberger Berman Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 20 countries, Neuberger Berman’s team is approximately 1,900 professionals, as of September 30, 2017. For five consecutive years, the company has been named to Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $284 billion in client assets as of September 30, 2017. For more information, please visit our website at www.nb.com.